Business
Transcontinental sees strong improvement in profitability for fourth consecutive quarter and resumes organic growth in revenues
Transcontinental sees strong improvement in profitability for fourth consecutive quarter and resu...
About this update from Transcontinental Inc. Class A
[{"type":"text","content":"\n\n\n\n Jun. 8, 2010 (Canada NewsWire Group) -- \n\n >\n\n\nMONTREAL, June 8 /CNW Telbec/ - During the second quarter of fiscal 2010, Transcontinental resumed organic growth in revenues and generated, for the fourth quarter in a row, an increase in adjusted operating income before amortization. The printing of the San Francisco Chronicle daily, the contribution of the Marketing Communications Sector and the stabilization of the market in certain traditional segments all made a specific contribution to organic growth in revenues. The solid advances in operating income stem from the full impact of the rationalization measures implemented in fiscal 2009 and continuous improvement of operational efficiency. Transcontinental also strengthened its financial position, which enabled it to invest in the digital development of its Media Sector and its marketing communication operations, as shown by the acquisition of LIPSO, a Canadian leader in mobile solutions.\n"I am very satisfied with our second quarter results and the performance of the past four quarters, which have all been higher than the previous comparable quarters," said François Olivier, President and Chief Executive Officer of Transcontinental. "We are systematically building the new Transcontinental by accompanying our customers with marketing strategies based on advertising personalization and the new communication platforms, while strengthening our traditional core business, which still provides extremely effective marketing tools. This strategy, combined with our employees' efforts to innovate and improve every day, will allow us to take full advantage of the opportunities that are opening up in our niches."\nTranscontinental continued to improve its financial position during the quarter, with a ratio of net indebtedness (including the securitization program) to adjusted operating income before amortization of 2.08 at April 30, 2010, versus 2.40 as at January 31, 2010 and 2.59 as at October 31, 2009.\n\nFinancial Highlights\n\nIn the second quarter of 2010, Transcontinental generated consolidated revenues of $510.0 million, down 4% from $531.1 million in the same quarter in 2009. Excluding divestitures of publications, plant closures, the paper effect and the exchange rate effect, revenues were up 2%.\nAdjusted operating income before amortizatio...